MG MOTORS

AUTOMOTIVE INDUSTRY
• Indian Auto Industry – 4th Largest in the World.

• 7th Largest manufacturer of Commercial Vehicles.

Annual Growth Rate (FY 18-19)

• Passenger Cars – 2.70%
• Commercial Vehicles – 17.55%
• Three Wheelers – 10.27%
• Two Wheelers – 4.86%

Market Size
• Domestic automobiles sales increased at 6.71% CAGR
between FY13-19.

• Commercial vehicle sales recorded 17.55% increase in

FY19.
INDIAN MARKET
 MG MOTORS

• MG is a British automotive marque and the M.G. Car

Company Limited was the British sports car manufacturer
that made the marque famous.

• Headquarters: Longbridge, Birmingham, UK

• Model: MG Hector – 27th June 2019 (India).
• Brand: MG (Introduced in 1924 by William Morris)
• Tagline: Emotional Dynamism
• Owner: SAIC Motors which is a subsidiary of Shanghai Automotive
Industry Corporation (Group) Motor Corporation.
o Headquarters: Shanghai, China.
o Founder: Chen Hong
o Founded: 1995
MG MOTORS HISTORY
 1928-1952: M.G. Car 1952-1967: British
1924-1928: Morris
Company Limited Motor Corporation
Garage Limited
William Morris changed Morris sold to British
Founder: William Morris
the name Motor Corporation

1968-1990: British 1967-1968: British

1990-1992: Austin Rover Leyland Motor Holdings

Bought by British British Motor Holdings British Motor

Aerospace merged with Leyland Corporation merged with
Cars Jaguar Car

2000-2005: MG Rover
2005-Present: MG
1992-2000: Rover Group Group
Motors
Bought by BMW Bought by MG Rover
Bought by SAIC
Group
WEBSITE
COMPETITORS
Market Share of Leading Brands
 Growth rate of Leading Players
Company Name Logo Revenue (2018- Revenue (2017- Growth Rate (%)
2019) (in ₹) 2018) (in ₹

Maruti Suzuki 886,301 million 781,040 million 13.4%

Hyundai Motor 406,000 million 386,400 million 5%

India

Mahindra and 1,058,060 million 920,940 million 14.88%

Mahindra

Tata Motors 3,019,380 million 3,094,161 million (2.4%)

Nissan India 74,373 million 94,954 million (21.67%)

Ford India 68,000 million 56,653 million 20%

Effects of Slowdown (July 2019 as compared to
July 2018)
Why high demand for MG HECTOR even after
the Slowdown?

• Biggest SUV in the segment with the most spacious cabin

• Guaranteed 60% buyback scheme
• Best in class warranty
• Most fuel-efficient diesel engine
• The only vehicle to offer internet-connected features in the
segment
PESTEL ANALYSIS
 CURRENT INDUSTRY SCENARIO
• India's car sales dipped 16 per cent in April, the worst fall in eight
years, and the tenth consecutive month since July 2018 when sales
have declined.
• This has taken a toll on auto dealerships, leading to the closure of some
300 of them across India
With India's auto sales declining more
automotive manufacturers are laying
off workers and temporarily halting
production to keep costs in check

The Indian government has also

set up an ambitious target of
having only electric vehicles being
sold in the country. Indian auto
industry is expected to see 8-12
per cent increase in its hiring
during FY19
 CHALLENGES INVOLVED
• Drop in purchasing power of people, caused by a sustained
rural distress
• Demonetization has had a long-term effect. It was a deep
phenomenon that impacted the psyche of people.
• The cost of meeting the new regulations, including BS VI,
and other safety norms such as air bags will be higher
• the IL&FS crisis late last year led to a severe liquidity
crunch, almost drying up credit for dealers and customers
 Road Ahead
• At this point, the company is looking at fundamentals of the
organization in total. As an organization, they really need to
establish what they stand for and the important aspects of the
business.
• To focus on five pillars of MG Motors, which are People,
Experience, Community, Diversity and Innovation.
• The company is looking to have close to 300 touch points in
India over the next few years. These include dealerships and
service centers.
• Over the next six years, MG Motors plans to invest Rs. 5,000
 Parent Companies with their Subsidiaries in Indian Automobile Industry

HYUNDAI MOTOR GROUP

Hyundai marketing strategy is differentiated
marketing.
•Primary consumer target is middle to upper
income professionals , who need value for
their money and comfortable ride in city
conditions .
•Secondary consumer target is college
students who need style and speed .
•The primary business target is mid sized to
large sized corporate that want to help their
managers and employees by providing them a
car with ease of transport .
•The secondary business target is
entrepreneurs and small business owners
who want to provide discounts to managers
buying a new car.

KIA - SELTOS
 TATA MOTORS
It targets anyone above 4 Lakh p.a. salary,
millennial employed as professionals, managers
and all those looking to switch from 2-wheeler
to 4-wheeler. The age bracket for brand’s
offering varies from 21-65 years with all
Middle class.

JLR was launched in India in June 2009, by Ford

but now is acquired by TATA MOTORS.
They did not made their presence in the sub- ₹40
lakh segments of premium hatch-backs, small
sedans, compact sedans and SUV’s but aimed at a
premium, luxury segment of cars for high class.
HONDA GROUP
•Honda entered here as a luxury brand and shifted to
smaller car segments. At the same time, they also
eliminated the premium product line-up such as Accord
and Civic.

•Expectation from the customers is slightly different.

They expect Honda to be in a premium position and not
luxury.

•They also decided to re launch some products, which

belong to more premium segments. So, they are now
reviewing their product line up to become more
premium. They also want to have some volumes. What
we are trying to achieve is premium positioning in each
segment, including the entry-level segment.
 FIAT

Jeep was finally launched in INDIA in 2016, era in which sale of

SUV’s was at a boom. They entered into the market promising
Freedom, Adventure, Authenticity, Passion to its consumers at
an affordable price. They targeted upper middle class range of
consumers.
 SUZUKI MOTOR
CORPORATION

•The Quality Advantage.

•Brand Trust- A Buying Experience Like No other.
•Quality Service Across 1036 Cities.
•The Low cost of Maintenance Advantage.
•Lowest Cost of ownership.
•Technological Advantage.
Variant Wise Comparison
MARKET WIDTH
 MARKET WIDTH OF MG MOTORS
MG MOTORS HAS PRESENCE ACROSS 11 COUNTRIES THROUGH
WHICH MG RANGE IS SOLD
INDIA
AUSTRALIA
CHINA
COSTA
CHILE
BRAZIL
COLOMBIA
RICA
THAILAND
SOUTH AFRICA
UK
 MG HECTORS
• MG MOTORS has 120 centres across INDIA and it plans to expand it to 250
touchpoints across the country by September this year.
MARKET WIDTH OF MG MOTORS in India
• Chandigarh
• Chennai
• Goa
• Guwahati
• Hyderabad
• Jaipur
• Kochi
• Lucknow
• Mumbai
• Mysuru
• Nagpur
• Patna
• Purnea
• Surat
• Thrissur
• Udaipur
• Delhi NCR
PLANT WIDTH
PLANT LOCATION: HALOL , GUJARAT

PLANT CAPACITY 80,000 UNITS PER ANNUM

 DISTRIBUTION DEPTH
Distribution Depth refers to stock with each middlemen

• MG Hector has till now accumulated a

total of 21,000 bookings.

• The number of centers MG hector has

is 120 centers.

• Dividing the sales by no of centers we

get the distribution depth of MG
Hector which is 175 which is further
dependent on territorial characteristics
 Measure of how quickly a company is gaining
attraction at a given point in time
MAJOR PLAYERS GROWTH SCORE

HYUNDAI MOTOR GROUP 3.00

TATA MOTORS 4.00

TOYOTA GROUP 2.00

HONDA MOTOR CO.LTD 3.00

FIAT 3.00

MARUTI SUZUKI 7.00

VOLKSWAGEN 4.00
SALES STRATEGY
 Innovative brand positioning
strategy, not volume.
 Focus on customer satisfaction
& optimizing sales & profit.
 Using Digital Marketing
strategy to create brand
awareness.
 Using concept of Storytelling.
VID-20190822-WA0002.mp4
 Advocacy & Influencer FIRST MG MOTORS OWNER
Marketing.
 Electric Vehicle Strategy
Skills required to join industry
Multi Verbal
Tasking Written
Listening

Problem Technical
Solving

Interpersonal Analytical
Contemporary practices
 Campaign #MG
Changemakers in
collaboration with The
Better India.
 MG Car Club
 Using strategies that
revolve around five
pillars.
1. People
2. Experience
3. Community
4. Diversity
5. Innovation
 Segmentation: Targeting:
 MG Hector  No target audience
older generation  Looking at mindset, attitude, psychographic.
youth  Not only 25-40 age groups but also, which a
meaningful generation
Sigital community= Digital+ social

STPD
Positioning: Differentiation:
 Building its brand, not volume.  Internet car with three engine options.
 Adopting top down strategy with 5 product
 Four variants- Style, Super, Smart and
plans including an EV Sharp.
 Launch of electronic vehicles.
 Distribution strategies
 MG Motors partners with Adobe to launch digital-focused
marketing strategy.
 Developed 10 year strategy
PHASE 1- right employees,
dealers,
appropriate locations,
good products,
a reasonable cost of ownership,
establishing the brand image
PHASE 2 ( post 2021-22)- eyeing high volume segment
(expanding
network),
manufacturing capacity,
more products,
more localization,
more linkages to economy
 Sales force management related decisions
 MG Motors Partnered with
PeopleStrong to Recruit more
women professional across sales &
services. Helping brand to recruit
around 3500 dealership staff in 2
phases. 2000 dealership staff with
network of 110 sales and service
outlets in India.
 Developed training facility in the
plant.
 Start dealer selection process.
 Margins for Middlemen in Automobile Industry

• Gross dealer margin of

3–5%.
• Margin given by MG
MOTORS is 5%.
Organizational Structure of Automobile
Industry
 MG MOTORS organizational structure.

Manufacturers Dealers Customers

Suggestions for the Structure.
 Challenges Involved in the Industry

Overcapacity
• Sustainability

Globalization
• Urbanization

Attracting Talent
Recommendations to boost sales in Industry